Joom Logistics Non-Delivery Compensation (NDC)
What Is Non Delivery Compensation?
Non Delivery Compensation (NDC) is a new compensation service applies to Joom Logistics Registered Mail (RM) parcels.
In case a registered mail order was shipped by Joom Logistics, and refunded by Joom due to the logistic issues, the cost of the product refunded to the customer will be fully or partially compensated to merchant by Joom. In case of such orders are in confirmed delivery status, but refunded by Joom due to logistics issues, Joom will compensate the merchant as well.
Logistics issues include Damaged and Non-delivery refund reasons.
⚠️ Please note:
When can you get the NDC?
The NDC is not applicable in case the parcel was returned to the merchant;
1. Not delivered (according to the tracking information, the parcel was not delivered to the customer);
2. Damaged (the parcel got damaged during shipping);
3. Missing proof of delivery (according to the tracking information, the parcel was delivered, but the customer says that he didn't get it and there is no proof of delivery);
4. Delivered to the wrong address (the parcel was delivered to the wrong address or the wrong person);
5. Turned back by post office (the client forgot about the parcel in the post office and didn't receive it or refused to receive it, so the parcel was sent back to the merchant);
How Is the Non-Delivery Compensation Amount Calculated?
Non-Delivery Compensation Amount is the amount that will be compensated in case of a refund due to the logistic issue. Joom Logistics compensates the Merchant Revenue amount to the merchant, within the compensating maximum.
Non-Delivery Compensation Amount = Merchant Revenue (shouldn't exceed the compensation maximum) |
Click here to see examples
Order information | Refund (Merchant Revenue) | Non-Delivery Compensation Amount |
Merchant revenue = $55 | $55 |
$55 (Merchant revenue < 2,000) |
Merchant revenue = $800 | $800 |
$800 (Merchant revenue < 2,000) |
Merchant revenue = $2,300 | $2,300 |
$2,000 (2,000 < Merchant revenue) |
⚠️ Please note: If a NDC covered order has been refunded partially, the NDC service will only compensate the corresponding part. For example:
- If order A is 100% refunded, the Non-Delivery Compensation Amount is $2,000. Thus, if this order is 50% refunded, the Non-Delivery Compensation Amount is: $2,000 * 50% = $1,000.
What Is the Compensating Maximum of NDC?
There is a maximum amount that can be compensated per order, the maximum is $2,000 for all product categories.
If the Merchant Revenue is higher than the maximum, only the maximum amount will be compensated.
How Is the Non-Delivery Compensation Amount Shown in the Invoices?
The Non-Delivery Compensation Amount is deducted from the refund amount for the order and is not reflected separately in the invoice. If an order is covered by NDC, the compensation amount will be shown on the Order Details page. If you want to check the compensation amount of a refunded order, you can find the Non-Delivery Compensation Amount on the Order Details page, then use the percentage of refunded to calculate the compensation amount.
Click here to see examples
Total refund amount |
Non-Delivery Compensation Amount |
Refund amount shown in invoice |
$ 2,300 |
$ 2,000 |
$ 300 |
So, if you’ve ever put in non-delivery risk amount to product price it’s time to reduce your prices because products are very well insured, so your financial risks are close to zero.
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